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A Compilation of the Messages and Papers of the Presidents by Grover Cleveland

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The long-pending claims of two citizens of the United States, Pelletier
and Lazare, have been disposed of by arbitration, and an award in favor
of each claimant has been made, which by the terms of the engagement is
final. It remains for Congress to provide for the payment of the
stipulated moiety of the expenses.

A question arose with Hayti during the past year by reason of the
exceptional treatment of an American citizen, Mr. Van Bokkelen, a
resident of Port-au-Prince, who, on suit by creditors residing in the
United States, was sentenced to imprisonment, and, under the operation
of a Haytian statute, was denied relief secured to a native Haytian.
This Government asserted his treaty right to equal treatment with
natives of Hayti in all suits at law. Our contention was denied by the
Haytian Government, which, however, while still professing to maintain
the ground taken against Mr. Van Bokkelen's right, terminated the
controversy by setting him at liberty without explanation.

An international conference to consider the means of arresting the
spread of cholera and other epidemic diseases was held at Rome in May
last, and adjourned to meet again on further notice. An expert delegate
on behalf of the United States has attended its sessions and will submit
a report.

Our relations with Mexico continue to be most cordial, as befits
those of neighbors between whom the strongest ties of friendship and
commercial intimacy exist, as the natural and growing consequence of our
similarity of institutions and geographical propinquity.

The relocation of the boundary line between the United States and Mexico
westward of the Rio Grande, under the convention of July 29, 1882, has
been unavoidably delayed, but I apprehend no difficulty in securing a
prolongation of the period for its accomplishment.

The lately concluded commercial treaty with Mexico still awaits the
stipulated legislation to carry its provisions into effect, for which
one year's additional time has been secured by a supplementary article
signed in February last and since ratified on both sides.

As this convention, so important to the commercial welfare of the
two adjoining countries, has been constitutionally confirmed by the
treaty-making branch, I express the hope that legislation needed to make
it effective may not be long delayed.

The large influx of capital and enterprise to Mexico from the United
States continues to aid in the development of the resources and in
augmenting the material well-being of our sister Republic. Lines of
railway, penetrating to the heart and capital of the country, bring
the two peoples into mutually beneficial intercourse, and enlarged
facilities of transit add to profitable commerce, create new markets,
and furnish avenues to otherwise isolated communities.

I have already adverted to the suggested construction of a ship railway
across the narrow formation of the territory of Mexico at Tehuantepec.

With the gradual recovery of Peru from the effects of her late
disastrous conflict with Chile, and with the restoration of civil
authority in that distracted country, it is hoped that pending war
claims of our citizens will be adjusted.

In conformity with notification given by the Government of Peru, the
existing treaties of commerce and extradition between the United States
and that country will terminate March 31, 1886.

Our good relationship with Russia continues.

An officer of the Navy, detailed for the purpose, is now on his way to
Siberia bearing the testimonials voted by Congress to those who
generously succored the survivors of the unfortunate _Jeannette_
expedition.

It is gratifying to advert to the cordiality of our intercourse with
Spain.

The long-pending claim of the owners of the ship _Masonic_ for loss
suffered through the admitted dereliction of the Spanish authorities in
the Philippine Islands has been adjusted by arbitration and an indemnity
awarded. The principle of arbitration in such cases, to which the United
States have long and consistently adhered, thus receives a fresh and
gratifying confirmation.

Other questions with Spain have been disposed of or are under diplomatic
consideration with a view to just and honorable settlement.

The operation of the commercial agreement with Spain of January
2-February 13, 1884, has been found inadequate to the commercial needs
of the United States and the Spanish Antilles, and the terms of the
agreement are subjected to conflicting interpretations in those islands.

Negotiations have been instituted at Madrid for a full treaty not open
to these objections and in the line of the general policy touching the
neighborly intercourse of proximate communities, to which I elsewhere
advert, and aiming, moreover, at the removal of existing burdens and
annoying restrictions; and although a satisfactory termination is
promised, I am compelled to delay its announcement.

An international copyright conference was held at Berne in September, on
the invitation of the Swiss Government. The envoy of the United States
attended as a delegate, but refrained from committing this Government to
the results, even by signing the recommendatory protocol adopted. The
interesting and important subject of international copyright has been
before you for several years. Action is certainly desirable to effect
the object in view; and while there may be question as to the relative
advantage of treating it by legislation or by specific treaty, the
matured views of the Berne conference can not fail to aid your
consideration of the subject.

The termination of the commercial treaty of 1862 between the United
States and Turkey has been sought by that Government. While there is
question as to the sufficiency of the notice of termination given, yet
as the commercial rights of our citizens in Turkey come under the
favored-nation guaranties of the prior treaty of 1830, and as equal
treatment is admitted by the Porte, no inconvenience can result from the
assent of this Government to the revision of the Ottoman tariffs, in
which the treaty powers have been invited to join.

Questions concerning our citizens in Turkey may be affected by the
Porte's nonacquiescence in the right of expatriation and by the
imposition of religious tests as a condition of residence, in which
this Government can not concur. The United States must hold in their
intercourse with every power that the status of their citizens is to be
respected and equal civil privileges accorded to them without regard
to creed, and affected by no considerations save those growing out of
domiciliary return to the land of original allegiance or of unfulfilled
personal obligations which may survive, under municipal laws, after such
voluntary return.

The negotiation with Venezuela relative to the rehearing of the awards
of the mixed commission constituted under the treaty of 1866 was resumed
in view of the recent acquiescence of the Venezuelan envoy in the
principal point advanced by this Government, that the effects of the old
treaty could only be set aside by the operation of a new convention. A
result in substantial accord with the advisory suggestions contained in
the joint resolution of March 3, 1883, has been agreed upon and will
shortly be submitted to the Senate for ratification.

Under section 3659 of the Revised Statutes all funds held in trust by
the United States and the annual interest accruing thereon, when not
otherwise required by treaty, are to be invested in stocks of the United
States bearing a rate of interest not less than 5 per cent per annum.
There being now no procurable stocks paying so high a rate of interest,
the letter of the statute is at present inapplicable, but its spirit is
subserved by continuing to make investments of this nature in current
stocks bearing the highest interest now paid. The statute, however,
makes no provision for the disposal of such accretions. It being
contrary to the general rule of this Government to allow interest on
claims, I recommend the repeal of the provision in question and the
disposition, under a uniform rule, of the present accumulations from
investment of trust funds.

The inadequacy of existing legislation touching citizenship and
naturalization demands your consideration.

While recognizing the right of expatriation, no statutory provision
exists providing means for renouncing citizenship by an American
citizen, native born or naturalized, nor for terminating and vacating
an improper acquisition of citizenship. Even a fraudulent decree of
naturalization can not now be canceled. The privilege and franchise of
American citizenship should be granted with care, and extended to those
only who intend in good faith to assume its duties and responsibilities
when attaining its privileges and benefits. It should be withheld from
those who merely go through the forms of naturalization with the intent
of escaping the duties of their original allegiance without taking upon
themselves those of their new status, or who may acquire the rights of
American citizenship for no other than a hostile purpose toward their
original governments. These evils have had many flagrant illustrations.

I regard with favor the suggestion put forth by one of my predecessors
that provision be made for a central bureau of record of the decrees of
naturalization granted by the various courts throughout the United
States now invested with that power.

The rights which spring from domicile in the United States, especially
when coupled with a declaration of intention to become a citizen, are
worthy of definition by statute. The stranger coming hither with intent
to remain, establishing his residence in our midst, contributing to the
general welfare, and by his voluntary act declaring his purpose to
assume the responsibilities of citizenship, thereby gains an inchoate
status which legislation may properly define. The laws of certain
States and Territories admit a domiciled alien to the local franchise,
conferring on him the rights of citizenship to a degree which places him
in the anomalous position of being a citizen of a State and yet not of
the United States within the purview of Federal and international law.

It is important within the scope of national legislation to define this
right of alien domicile as distinguished from Federal naturalization.

The commercial relations of the United States with their immediate
neighbors and with important areas of traffic near our shores suggest
especially liberal intercourse between them and us.

Following the treaty of 1883 with Mexico, which rested on the basis of a
reciprocal exemption from customs duties, other similar treaties were
initiated by my predecessor.

Recognizing the need of less obstructed traffic with Cuba and Puerto
Rico, and met by the desire of Spain to succor languishing interests
in the Antilles, steps were taken to attain those ends by a treaty of
commerce. A similar treaty was afterwards signed by the Dominican
Republic. Subsequently overtures were made by Her Britannic Majesty's
Government for a like mutual extension of commercial intercourse with
the British West Indian and South American dependencies, but without
result.

On taking office I withdrew for reexamination the treaties signed with
Spain and Santo Domingo, then pending before the Senate. The result has
been to satisfy me of the inexpediency of entering into engagements of
this character not covering the entire traffic.

These treaties contemplated the surrender by the United States of large
revenues for inadequate considerations. Upon sugar alone duties were
surrendered to an amount far exceeding all the advantages offered in
exchange. Even were it intended to relieve our consumers, it was evident
that so long as the exemption but partially covered our importation such
relief would be illusory. To relinquish a revenue so essential seemed
highly improvident at a time when new and large drains upon the Treasury
were contemplated. Moreover, embarrassing questions would have arisen
under the favored-nation clauses of treaties with other nations.

As a further objection, it is evident that tariff regulation by treaty
diminishes that independent control over its own revenues which is
essential for the safety and welfare of any government. Emergency
calling for an increase of taxation may at any time arise, and no
engagement with a foreign power should exist to hamper the action of the
Government.

By the fourteenth section of the shipping act approved June 26, 1884,
certain reductions and contingent exemptions from tonnage dues were made
as to vessels entering ports of the United States from any foreign port
in North and Central America, the West India Islands, the Bahamas and
Bermudas, Mexico, and the Isthmus as far as Aspinwall and Panama. The
Governments of Belgium, Denmark, Germany, Portugal, and Sweden and
Norway have asserted, under the favored-nation clause in their treaties
with the United States, a claim to like treatment in respect of vessels
coming to the United States from their home ports. This Government,
however, holds that the privileges granted by the act are purely
geographical, inuring to any vessel of any foreign power that may choose
to engage in traffic between this country and any port within the
defined zone, and no warrant exists under the most-favored-nation clause
for the extension of the privileges in question to vessels sailing to
this country from ports outside the limitation of the act.

Undoubtedly the relations of commerce with our near neighbors, whose
territories form so long a frontier line difficult to be guarded, and
who find in our country, and equally offer to us, natural markets,
demand special and considerate treatment. It rests with Congress to
consider what legislative action may increase facilities of intercourse
which contiguity makes natural and desirable.

I earnestly urge that Congress recast the appropriations for the
maintenance of the diplomatic and consular service on a footing
commensurate with the importance of our national interests. At every
post where a representative is necessary the salary should be so graded
as to permit him to live with comfort. With the assignment of adequate
salaries the so-called notarial extraofficial fees, which our officers
abroad are now permitted to treat as personal perquisites, should be
done away with. Every act requiring the certification and seal of the
officer should be taxable at schedule rates and the fee therefor
returned to the Treasury. By restoring these revenues to the public use
the consular service would be self-supporting, even with a liberal
increase of the present low salaries.

In further prevention of abuses a system of consular inspection should
be instituted.

The appointment of a limited number of secretaries of legation at large,
to be assigned to duty wherever necessary, and in particular for
temporary service at missions which for any cause may be without a head,
should also be authorized.

I favor also authorization for the detail of officers of the regular
service as military or naval attaches at legations.

Some foreign governments do not recognize the union of consular with
diplomatic functions. Italy and Venezuela will only receive the
appointee in one of his two capacities, but this does not prevent the
requirement of a bond and submission to the responsibilities of an
office whose duties he can not discharge. The superadded title of
consul-general should be abandoned at all missions.

I deem it expedient that a well-devised measure for the reorganization
of the extraterritorial courts in Oriental countries should replace the
present system, which labors under the disadvantage of combining
judicial and executive functions in the same office.

In several Oriental countries generous offers have been made of
premises for housing the legations of the United States. A grant of
land for that purpose was made some years since by Japan, and has been
referred to in the annual messages of my predecessor. The Siamese
Government has made a gift to the United States of commodious quarters
in Bangkok. In Korea the late minister was permitted to purchase a
building from the Government for legation use. In China the premises
rented for the legation are favored as to local charges. At Tangier
the house occupied by our representative has been for many years the
property of this Government, having been given for that purpose in 1822
by the Sultan of Morocco. I approve the suggestion heretofore made,
that, in view of the conditions of life and administration in the
Eastern countries, the legation buildings in China, Japan, Korea, Siam,
and perhaps Persia, should be owned and furnished by the Government
with a view to permanency and security. To this end I recommend that
authority be given to accept the gifts adverted to in Japan and Siam,
and to purchase in the other countries named, with provision for
furniture and repairs. A considerable saving in rentals would result.

The World's Industrial Exposition, held at New Orleans last winter, with
the assistance of the Federal Government, attracted a large number of
foreign exhibits, and proved of great value in spreading among the
concourse of visitors from Mexico and Central and South America a wider
knowledge of the varied manufactures and productions of this country and
their availability in exchange for the productions of those regions.

Past Congresses have had under consideration the advisability of
abolishing the discrimination made by the tariff laws in favor of the
works of American artists. The odium of the policy which subjects to
a high rate of duty the paintings of foreign artists and exempts the
productions of American artists residing abroad, and who receive
gratuitously advantages and instruction, is visited upon our citizens
engaged in art culture in Europe, and has caused them with practical
unanimity to favor the abolition of such an ungracious distinction; and
in their interest, and for other obvious reasons, I strongly recommend
it.

The report of the Secretary of the Treasury fully exhibits the condition
of the public finances and of the several branches of the Government
connected with his Department. The suggestions of the Secretary relating
to the practical operations of this important Department, and his
recommendations in the direction of simplification and economy,
particularly in the work of collecting customs duties, are especially
urged upon the attention of Congress.

The ordinary receipts from all sources for the fiscal year ended June
30, 1885, were $322,690,706.38. Of this sum $181,471,939.34 was received
from customs and $112,498,725.54 from internal revenue. The total
receipts, as given above, were $24,829,163.54 less than those for the
year ended June 30, 1884. This diminution embraces a falling off of
$13,595,550.42 in the receipts from customs and $9,687,346.97 in the
receipts from internal revenue.

The total ordinary expenditures of the Government for the fiscal year
were $260,226,935.50, leaving a surplus in the Treasury at the close of
the year of $63,463,771.27. This is $40,929,854.32 less than the surplus
reported at the close of the previous year.

The expenditures are classified as follows:


For civil expenses $23,826,942.11
For foreign intercourse 5,439,609.11
For Indians 6,552,494.63
For pensions 56,102,267.49
For the military, including river and harbor 42,670,578.47
improvements and arsenals
For the Navy, including vessels, machinery, and 16,021,079.69
improvements of navy-yards
For interest on the public debt 51,386,256.47
For the District of Columbia 3,499,650.95
For miscellaneous expenditures, including public 54,728,056.21
buildings, light-houses, and collecting the revenue


The amount paid on the public debt during the fiscal year ended June 30,
1885, was $45,993,235.43, and there has been paid since that date and up
to November 1, 1885, the sum of $369,828, leaving the amount of the debt
at the last-named date $1,514,475,860.47. There was, however, at that
time in the Treasury, applicable to the general purposes of the
Government, the sum of $66,818,292.38.

The total receipts for the current fiscal year ending June 30, 1886,
ascertained to October 1, 1885, and estimated for the remainder of the
year, are $315,000,000. The expenditures ascertained and estimated for
the same time are $245,000,000, leaving a surplus at the close of the
year estimated at $70,000,000.

The value of the exports from the United States to foreign countries
during the last fiscal year was as follows:


Domestic merchandise $726,682,946.00
Foreign merchandise 15,506,809.00
742,189,755.00

Gold 8,477,892.00
Silver 33,753,633.00
784,421,280.00


Some of the principal exports, with their values and the percentage they
respectively bear to the total exportation, are given as follows:


Articles. Value. Percentage.

Cotton and cotton manufactures $213,799,049 29.42
Breadstuffs 160,370,821 22.07
Provisions 107,332,456 14.77
Oils--mineral, vegetable, and animal 54,326,202 7.48
Tobacco and its manufactures 24,767,305 3.41
Wood and its manufactures 21,464,322 2.95


Our imports during the year were as follows:


Merchandise $579,580,053.80
Gold 26,691,696.00
Silver 16,550,627.00
622,822,376.80


The following are given as prominent articles of import during the year,
with their values and the percentage they bear to the total importation:


Articles. Value. Percentage.

Sugar and molasses $76,738,713 13.29
Coffee 46,723,318 8.09
Wool and its manufactures 44,656,482 7.73
Silk and its manufactures 40,393,002 6.99
Chemicals, dyes, drugs, and medicines 35,070,816 6.07
Iron and steel and their manufactures 34,563,689 5.98
Flax, hemp, jute, and their manufactures 32,854,874 5.69
Cotton and its manufactures 28,152,001 4.88
Hides and skins other than fur skins 20,586,443 3.56


Of the entire amount of duties collected 70 per cent was collected from
the following articles of import:


Percentage.
Sugar and molasses 29
Wool and its manufactures 15
Silk and its manufactures 8
Iron and steel and their manufactures 7
Cotton manufactures 6
Flax, hemp, and jute, and their manufactures 5


The fact that our revenues are in excess of the actual needs of an
economical administration of the Government justifies a reduction in the
amount exacted from the people for its support. Our Government is but
the means established by the will of a free people by which certain
principles are applied which they have adopted for their benefit and
protection; and it is never better administered and its true spirit is
never better observed than when the people's taxation for its support is
scrupulously limited to the actual necessity of expenditure and
distributed according to a just and equitable plan.

The proposition with which we have to deal is the reduction of the
revenue received by the Government, and indirectly paid by the people,
from customs duties. The question of free trade is not involved, nor is
there now any occasion for the general discussion of the wisdom or
expediency of a protective system.

Justice and fairness dictate that in any modification of our present
laws relating to revenue the industries and interests which have
been encouraged by such laws, and in which our citizens have large
investments, should not be ruthlessly injured or destroyed. We should
also deal with the subject in such manner as to protect the interests of
American labor, which is the capital of our workingmen. Its stability
and proper remuneration furnish the most justifiable pretext for a
protective policy.

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